KeyCorp reported second-quarter net income from continuing operations of $221 million compared to $243 in the same year-ago period. For the six months ended June 30, 2012, net income on the same basis was $420 million compared to $427 million for the same period in 2011.

In its highlights, Key noted that it expects to terminate its leverage leases to realize the economic benefits of the current low rate environment. Key said the gains are nontaxable pursuant to a previous settlement with the IRS.

The company also said it is planning expense reductions of $150-$200 million targeted by December 2013, with full-year impact in 2014.

The following information on Key Equipment Finance was excerpted from the news release:

Equipment finance total revenue in the second quarter was $57 million, down from $63 million for the same period in 2011. Net income “attributable to Key” was $9.0 million compared to $30 million in the second quarter after provision charges of $5.0 million in Q2/12 versus a credit of $30.0 million in Q2/11. Key said average loans/leases in Q2/12 were $4.9 billion, up from $4.5 billion a year earlier. Return on average allocated equity was 14.48% versus 35.81% in Q2/11, Key said while average full-time equivalent employee counts was down from 511 in Q2/11 to 464 in Q2/12.

To read the KeyCorp news release click here.